Kevin Warsh’s first outing as Federal Reserve Chair went about as subtly as a sledgehammer. The Fed held its benchmark rate steady at 3.50%-3.75% on June 17, but the real story was what came next: nine Fed officials now project at least one rate hike before the end of 2026.
Bitcoin and other major cryptocurrencies declined in the aftermath, and stocks followed them lower.
The inflation problem that won’t quit
Inflation has now exceeded the Fed’s 2% target for five consecutive years. The Consumer Price Index clocked in at 4.2% in May 2026, more than double the level the central bank considers healthy.
Warsh made clear during his remarks that price stability isn’t a secondary concern. It’s the primary one. The new chair is known for rejecting the idea that higher inflation should be tolerated in exchange for job gains. That philosophical stance dates back to his previous tenure at the Fed, where he built a reputation as a committed inflation hawk.
